“In the first quarter we achieved growth in consumer revenue, reflecting
the early results of the substantial initiatives we have underway across
the company,” said Dan McCarthy, President and CEO. “We are also
extremely pleased with the continued improvement in subscriber trends in
our California, Texas and Florida (CTF) markets, most notably that we
have achieved our first quarter of positive FiOS broadband net
additions. We also have begun to improve the trends in the Legacy
markets. The entire Frontier team remains focused on continuing to
enhance the customer experience, achieving further improvements in
churn, maintaining strong cash flow, and strengthening the balance
sheet. We are very confident that we have the opportunity for sustained
growth in consumer, and improvement in commercial.”

Consolidated Results

The Company adopted the new revenue recognition standard ASC 606 using
the modified retrospective method effective January 1, 2018. The table
below reflects the results for the first quarter under ASC 606, as well
as what the first quarter results would have been under ASC 605, the
prior accounting standard. For comparison, we have also included our
fourth quarter results as reported under ASC 605.

______________________________1 See “Non-GAAP Measures”
for a description of this measure and its calculation. See Schedule A
for a reconciliation to net income/(loss).

$ in millions (except ARPC)

Q1 2018

Q1 2018

Q4 2017

As Reported

Excluding

As Reported

(Under ASC 606)

Adoption

(Under ASC 605)

of ASC 606

Revenue

Consumer

$

1,128

$

1,089

$

1,086

Commercial

974

917

941

Subsidy and Other Regulatory Revenue

97

187

190

Total Revenue

$

2,199

$

2,193

$

2,217

Data & Internet Services

985

942

939

Voice Services

702

670

687

Video Services

280

309

310

Other

135

85

91

Total Customer Revenue

2,102

2,006

2,027

Subsidy and Other Regulatory Revenue

97

187

190

Total Revenue

$

2,199

$

2,193

$

2,217

Net Income/(Loss)

$

20

$

14

$

(1,029

)

Adjusted EBITDA

$

908

$

901

$

919

Adjusted EBITDA Margin

41.3

%

41.1

%

41.5

%

Consumer ARPC

$

86.21

$

83.26

$

81.61

Consolidated revenue for the first quarter 2018 was $2.20 billion.
Within consolidated revenue, consumer revenue was $1.13 billion,
commercial revenue was $974 million and subsidy and other regulatory
revenue was $97 million. For the fourth quarter 2017, consolidated
revenue was $2.22 billion, consumer revenue was $1.09 billion,
commercial revenue was $941 million and subsidy and other regulatory
revenue was $190 million.

Net income for the first quarter of 2018 was $20 million. Net loss for
the first quarter attributable to common shares was $(33) million, for a
diluted net loss per common share of $(0.44). Adjusted EBITDA totaled
$908 million, for an adjusted EBITDA margin2 of 41.3%. For
the fourth quarter of 2017, net loss was $(1.03) billion. Net loss for
the fourth quarter attributable to common shares was $(1.08) billion,
for a diluted net loss per common share of $(13.91). Adjusted EBITDA
totaled $919 million for an adjusted EBITDA margin of 41.5%.

____________________________________2 See Note 1,
above. Adjusted EBITDA margin is a non-GAAP measure of performance,
calculated as adjusted EBITDA, divided by total revenue. See “Non-GAAP
Measures” for a description of this measure and its calculation. See
Schedule A for a reconciliation to net loss.

As of the end of the first quarter, the Company had attained
approximately $275 million in annualized cost synergies, and the Company
remains on track to achieve its target of $350 million in annualized
run-rate cost synergies by mid-2018.

For the first quarter of 2018, net cash provided from operating
activities was $251 million and operating free cash flow3 was
$(46) million, which reflects cash interest payments of $593 million, or
40% of the $1.5 billion expected annual cash interest expense. Over the
four-quarter period ending March 31, 2018, net cash provided from
operating activities was $1,801 million and operating free cash flow was
$632 million.

Customer churn improved to 1.94% (1.71% for Legacy and 2.30% for CTF
operations).

Average Revenue Per Customer (ARPC) of $86.21.

Commercial Business Highlights

Revenue of $974 million. Excluding the impact of ASC 606, the
commercial revenue decline was caused by the Small, Medium, and
Enterprise (SME) portion of the business.

Total commercial customers of 441,000 compared to 453,000 during the
fourth quarter of 2017.

Carrier/wholesale revenue was roughly stable sequentially.

Capital Structure and Capital Allocation

In January 2018, Frontier amended its credit facilities to provide
increased flexibility in managing its capital structure.

In March 2018, Frontier issued $1.6 billion aggregate principal amount
of Second Lien Secured Notes due 2026. Frontier used the proceeds and
cash on hand to repurchase $1.65 billion aggregate principal amount of
notes due in 2020 and 2021.

As of March 31, 2018, Frontier’s leverage ratio (as calculated in
accordance with its credit agreements) was 4.77:1. The leverage ratio
was 4.59:1 as of December 31, 2017.

The Board of Directors has declared a regular and final quarterly
dividend on the Convertible Preferred of $2.78125 per share, payable
in cash on June 29, 2018 to holders of record at the close of business
on June 15, 2018. The Convertible Preferred will convert to common
stock on June 29, 2018.

_____________________________________3 Operating free
cash flow is a non-GAAP measure of liquidity derived from net cash
provided from operating activities. See “Non-GAAP Measures” for a
description of this measure and its calculation and Schedules A for a
reconciliation to net cash provided from operating activities.

Guidance

Guidance for 2018 remains unchanged.

Adjusted EBITDA – Approximately $3.6 billion

Capital expenditures – $1.0 billion to $1.15 billion

Cash taxes – Less than $25 million

Cash pension/OPEB – Approximately $150 million

Cash interest expense – Approximately $1.5 billion for the full year;
second quarter cash interest payments of approximately $150 million

Operating free cash flow – Approximately $800 million

Non-GAAP Financial Measures

Frontier uses certain non-GAAP financial measures in evaluating its
performance, including EBITDA, EBITDA margin, adjusted EBITDA, adjusted
EBITDA margin, operating free cash flow, and adjusted operating
expenses, each of which is described below. Management uses these
non-GAAP financial measures internally to (i) assist in analyzing
Frontier's underlying financial performance from period to period, (ii)
analyze and evaluate strategic and operational decisions, (iii)
establish criteria for compensation decisions, and (iv) assist in the
understanding of Frontier's ability to generate cash flow and, as a
result, to plan for future capital and operational decisions. Management
believes that the presentation of these non-GAAP financial measures
provides useful information to investors regarding Frontier’s financial
condition and results of operations because these measures, when used in
conjunction with related GAAP financial measures (i) provide a more
comprehensive view of Frontier’s core operations and ability to generate
cash flow, (ii) provide investors with the financial analytical
framework upon which management bases financial, operational,
compensation, and planning decisions and (iii) present measurements that
investors and rating agencies have indicated to management are useful to
them in assessing Frontier and its results of operations.

A reconciliation of these measures to the most comparable financial
measures calculated and presented in accordance with GAAP is included in
the accompanying tables. These non-GAAP financial measures are not
measures of financial performance or liquidity under GAAP, nor are they
alternatives to GAAP measures and they may not be comparable to
similarly titled measures of other companies.

EBITDA is defined as net income (loss) less income tax expense
(benefit), interest expense, investment and other income, pension
settlement costs, gains/losses on extinguishment of debt, and
depreciation and amortization. EBITDA margin is calculated by dividing
EBITDA by total revenue.

Management uses EBITDA, EBITDA margin, adjusted EBITDA and adjusted
EBITDA margin to assist it in comparing performance from period to
period and as measures of operational performance. Management believes
that these non-GAAP measures provide useful information for investors in
evaluating Frontier’s operational performance from period to period
because they exclude depreciation and amortization expenses related to
investments made in prior periods and are determined without regard to
capital structure or investment activities. By excluding capital
expenditures, debt repayments and dividends, among other factors, these
non-GAAP financial measures have certain shortcomings. Management
compensates for these shortcomings by utilizing these non-GAAP financial
measures in conjunction with the comparable GAAP financial measures.

Adjusted net income (loss) attributable to Frontier common shareholders
is defined as net income (loss) attributable to Frontier common
shareholders and excludes acquisition and integration costs,
restructuring costs and other charges, pension settlement costs,
goodwill impairment charges, certain income tax items and the income tax
effect of these items, and certain non-recurring items (e.g.,
storm-related costs and work stoppage costs). Adjusting for these items
allows investors to better understand and analyze Frontier’s financial
performance over the periods presented.

Management defines operating free cash flow, a non-GAAP measure, as net
cash provided from operating activities less capital expenditures.
Management uses operating free cash flow to assist it in comparing
liquidity from period to period and to obtain a more comprehensive view
of Frontier’s core operations and ability to generate cash flow.
Management believes that this non-GAAP measure is useful to investors in
evaluating cash available to service debt and pay dividends. This
non-GAAP financial measure has certain shortcomings; it does not
represent the residual cash flow available for discretionary
expenditures, as items such as debt repayments and preferred stock
dividends are not deducted in determining such measure. Management
compensates for these shortcomings by utilizing this non-GAAP financial
measure in conjunction with the comparable GAAP financial measure.

The information in this press release should be read in conjunction with
the financial statements and footnotes contained in Frontier’s documents
filed with the U.S. Securities and Exchange Commission.

Conference Call and Webcast

Frontier will host a conference call today at 4:30 P.M. Eastern time. In
connection with the conference call and as a convenience to investors,
Frontier furnished today, under cover of a Current Report on Form 8-K,
additional materials regarding first quarter 2018 results. The
conference call will be webcast and may be accessed in the Webcasts
& Presentations section of Frontier's Investor Relations website
at www.frontier.com/ir.

A telephonic replay of the conference call will be available from 8:00
P.M. Eastern Time on May 1, 2018, through 8:00 P.M. Eastern Time on May
6, 2018, at 888-203-1112 for callers dialing from the U.S. or Canada,
and at 719-457-0820 for those dialing from outside the U.S. or Canada.
Use the passcode 2051415 to access the replay. A webcast replay of the
call will be available at www.frontier.com/ir.

About Frontier Communications

Frontier Communications Corporation (NASDAQ: FTR) is a leader in
providing communications services to urban, suburban, and rural
communities in 29 states. Frontier offers a variety of services to
residential customers over its fiber-optic and copper networks,
including video, high-speed internet, advanced voice, and Frontier Secure®
digital protection solutions. Frontier Business offers communications
solutions to small, medium, and enterprise businesses. More information
about Frontier is available at www.frontier.com.

Forward-Looking Statements

This earnings release contains "forward-looking statements," related to
future, not past, events. Forward-looking statements express
management’s expectations regarding Frontier’s future business,
financial performance, and financial condition, and contain words such
as "expect," "anticipate," "intend," "plan," "believe," "seek," "see,"
"may," "will," "would," or "target." Forward-looking statements by their
nature address matters that are, to different degrees, uncertain. For
Frontier, particular uncertainties that could cause actual results to be
materially different than those expressed in such forward-looking
statements include: competition from cable, wireless and wireline
carriers, satellite, and OTT companies, and the risk that Frontier will
not respond on a timely or profitable basis; Frontier’s ability to
successfully adjust to changes in the communications industry, including
the effects of technological changes and competition on its capital
expenditures, products and service offerings; Frontier’s ability to
implement organizational structure changes; risks related to the
operation of Frontier’s properties and ability to retain or attract new
customers; Frontier’s ability to realize anticipated cost savings and
meet commitments made in connection with the Verizon acquisition;
reductions in revenue from voice customers that Frontier cannot offset
with increases in revenue from broadband and video subscribers and sales
of other products and services; Frontier’s ability to maintain
relationships with customers, employees or suppliers; Frontier’s ability
to attract/retain key talent; the effects of governmental legislation
and regulation on Frontier’s business; the impact of regulatory,
investigative and legal proceedings and legal compliance risks;
government infrastructure projects that impact capital expenditures;
continued reductions in switched access revenue as a result of
regulation, competition or technology substitutions; the effects of
changes in the availability of federal and state universal service
funding or other subsidies to Frontier and its competitors; Frontier’s
ability to meet its remaining CAF II broadband buildout obligations on a
timely basis; Frontier’s ability to effectively manage service quality
and meet mandated service quality metrics; Frontier’s ability to
successfully introduce new product offerings; the effects of changes in
accounting policies or practices, including potential future impairment
charges with respect to intangible assets; Frontier’s ability to
effectively manage its operations, operating expenses, capital
expenditures, debt service requirements and cash paid for income taxes
and liquidity; the effects of changes in both general and local economic
conditions in the markets that Frontier serves; the effects of increased
medical expenses and pension and postemployment expenses; the effects of
changes in income tax rates, tax laws, regulations or rulings, or
federal or state tax assessments; Frontier’s ability to successfully
renegotiate union contracts; changes in pension plan assumptions,
interest rates, discount rates, regulatory rules and/or the value of
Frontier’s pension plan assets, which could require Frontier to make
increased contributions to its pension plans; adverse changes in the
credit markets; adverse changes in the ratings given to Frontier’s debt
securities by nationally accredited ratings organizations; the
availability and cost of financing in the credit markets; covenants in
Frontier’s indentures and credit agreements that may limit Frontier’s
operational and financial flexibility as well as its ability to access
the capital markets in the future; the effects of state regulatory cash
management practices that could limit Frontier’s ability to transfer
cash among its subsidiaries or dividend funds up to the parent company;
the effects of severe weather events or other natural or man-made
disasters, which may increase operating expenses or adversely impact
customer revenue; the impact of potential information technology or data
security breaches or other disruptions; and the risks and other factors
contained in Frontier’s filings with the U.S. Securities and Exchange
Commission, including its reports on Forms 10-K and 10-Q. These risks
and uncertainties may cause actual future results to be materially
different than those expressed in such forward-looking statements.
Frontier has no obligation to update or revise these forward-looking
statements and does not undertake to do so.

Frontier Communications Corporation

Consolidated Financial Data

For the quarter ended

($ in millions and shares in thousands, except per share amounts)

March 31, 2018 (1)

December 31, 2017

March 31, 2017

Statement of Operations Data

Revenue

$

2,199

$

2,217

$

2,356

Operating expenses:

Network access expenses

372

388

411

Network related expenses

483

491

(2)

493

(2)

Selling, general and administrative expenses

469

456

(2)

542

(2)

Depreciation and amortization

505

514

579

Goodwill impairment

-

2,078

-

Acquisition and integration costs

-

10

2

Restructuring costs and other charges

4

27

12

Total operating expenses

1,833

3,964

(2)

2,039

(2)

Operating income (loss)

366

(1,747

)

(2)

317

(2)

Investment and other income (loss), net

8

(3

)

(2)

-

(2)

Pension settlement costs

-

6

43

Gain on extinguishment of debt

33

1

-

Interest expense

374

377

388

Income (loss) before income taxes

33

(2,132

)

(114

)

Income tax expense (benefit)

13

(1,103

)

(39

)

Net income (2)

Less: Income attributable to the noncontrolling interest in a
partnership

Net Income (loss)

20

(1,029

)

(75

)

Less: Dividends on preferred stock

53

53

54

Net loss attributable to Frontier common shareholders

$

(33

)

$

(1,082

)

$

(129

)

Weighted average shares outstanding - basic

77,416

77,805

77,591

Weighted average shares outstanding - diluted

77,416

77,805

77,591

Basic net loss per common share

$

(0.44

)

$

(13.91

)

$

(1.67

)

Diluted net loss per common share

$

(0.44

)

$

(13.91

)

$

(1.67

)

Other Financial Data:

Capital expenditures - Business operations

$

297

$

308

$

315

Capital expenditures - Integration activities

$

-

$

15

$

1

Dividends paid - Common stock

$

-

$

47

$

124

Dividends paid - Preferred stock

$

53

$

53

$

54

(1) We adopted Accounting Standard Update 2014-09,
“Revenue from Contracts with Customers (ASC 606)” on January 1,
2018, using the modified retrospective application. This method does
not impact the prior periods, which continue to reflect the
accounting treatment prior to the adoption of ASC 606. As a result,
for items that were affected by our adoption of ASC 606, financial
results of periods prior to January 1, 2018 are not comparable to
the current period financial results. To provide comparability to
our results, we provide a supplemental schedule (see Schedule D)
which contains certain financial information on a pre adoption of
ASC 606 basis.

(2) Effective January 1, 2018, Frontier adopted ASU
2017-07, “Improving the Presentation of Net Periodic Pension Cost
and Net Periodic Postretirement Benefit Cost.” The standard requires
certain benefit costs to be reclassified from operating expenses to
non-operating expenses. This change in policy was applied using a
retrospective approach and accordingly we have reclassified $1
million and $3 million of net operating expenses as non-operating
expense for the three months ended December 31, 2017 and March 31,
2017, respectively. Additional pension settlement costs of $6
million and $43 million for the three months ended December 31, 2017
and March 31, 2017, respectively, were reclassified from operating
expense to non-operating expense.

Frontier Communications Corporation

Consolidated Financial Data

For the quarter ended

March 31, 2018 (1)

December 31, 2017

March 31, 2017

($ in millions)

Selected Statement of Operations Data

Revenue:

Data and internet services

$

985

$

939

$

993

(2)

Voice services

702

687

751

Video services

280

310

347

Other

135

91

68

Customer revenue

2,102

2,027

2,159

(2)

Subsidy and other regulatory revenue

97

190

197

Total revenue

$

2,199

$

2,217

$

2,356

(2)

Other Financial Data

Revenue:

Consumer

$

1,128

$

1,086

$

1,164

Commercial

974

941

995

(2)

Customer revenue

2,102

2,027

2,159

(2)

Subsidy and other regulatory revenue

97

190

197

Total revenue

$

2,199

$

2,217

$

2,356

(2)

(1) We adopted Accounting Standard Update 2014-09,
“Revenue from Contracts with Customers (ASC 606)” on January 1,
2018, using the modified retrospective application. This method does
not impact the prior periods, which continue to reflect the
accounting treatment prior to the adoption of ASC 606. As a result,
for items that were affected by our adoption of ASC 606, financial
results of periods prior to January 1, 2018 are not comparable to
the current period financial results. To provide comparability to
our results, we provide a supplemental schedule (see Schedule D)
which contains certain financial information on a pre adoption of
ASC 606 basis.

(2) Includes revenue from Frontier Secure Strategic
Partnerships business, which was sold in May of 2017, of $25
million for the three months ended March 31, 2017.

Frontier Communications Corporation

Consolidated Financial and Operating Data

For the quarter ended

March 31, 2018

December 31, 2017

March 31, 2017

Customers (in thousands)

4,765

4,850

5,220

Consumer customer metrics

Customers (in thousands)

4,324

4,397

4,736

Net customer additions/(losses)

(74

)

(89

)

(155

)

Average monthly consumer revenue per customer

$

86.21

(1)

$

81.61

$

80.62

Customer monthly churn

1.94

%

1.98

%

2.37

%

Commercial customer metrics

Customers (in thousands)

441

453

484

Broadband subscriber metrics (in thousands)

Broadband subscribers

3,895

3,938

4,164

Net subscriber additions/(losses)

(43

)

(63

)

(107

)

Video (excl. DISH) subscriber metrics (in thousands)

Video subscribers

934

961

1,065

Net subscriber additions/(losses)

(28

)

(20

)

(80

)

Video - DISH subscriber metrics (in thousands)

DISH subscribers

227

235

266

Net subscriber additions/(losses)

(8

)

(9

)

(8

)

Employees

22,081

22,736

26,878

(2)

(1) We adopted Accounting Standard Update 2014-09,
“Revenue from Contracts with Customers (ASC 606)” on January 1,
2018, using the modified retrospective application. This method does
not impact the prior periods, which continue to reflect the
accounting treatment prior to the adoption of ASC 606. As a result,
for items that were affected by our adoption of ASC 606, financial
results of periods prior to January 1, 2018 are not comparable to
the current period financial results. To provide comparability to
our results, we provide a supplemental schedule (see Schedule D)
which contains certain financial information on a pre adoption of
ASC 606 basis.

(2) At March 31, 2017, we had approximately 1,900
employees from our Frontier Secure Partnerships business, which was
sold in May 2017.

(1) Includes impact arising from federal research and
development credits, changes in certain deferred tax balances, state
tax law changes, state filing method change, and the net impact of
uncertain tax positions.

(2) Adjusted net income (loss) attributable to Frontier
common shareholders may not sum due to rounding.

SCHEDULE C

Frontier Communications Corporation

Reconciliation of Non-GAAP Financial Measures

For the quarter ended

($ in millions)

March 31. 2018

December 31, 2017

March 31, 2017

Adjusted Operating Expenses

Total operating expenses

$

1,833

$

3,964

(1)

$

2,039

(1)

Subtract:

Depreciation and amortization

505

514

579

Goodwill impairment

-

2,078

-

Acquisition and integration costs

-

10

2

Pension/OPEB expense

22

20

(1)

22

(1)

Restructuring costs and other charges

4

27

12

Stock-based compensation expense

4

4

3

Storm-related costs

-

13

-

Work stoppage costs

7

-

-

Adjusted operating expenses

$

1,291

$

1,298

$

1,421

(1) Effective January 1, 2018, Frontier adopted ASU
2017-07, “Improving the Presentation of Net Periodic Pension Cost
and Net Periodic Postretirement Benefit Cost.” The standard requires
certain benefit costs to be reclassified from operating expenses to
non-operating expenses. This change in policy was applied using a
retrospective approach and accordingly we have reclassified $1
million and $3 million of net operating expenses as non-operating
expense for the three months ended December 31, 2017 and March 31,
2017, respectively. Additional pension settlement costs of $6
million and $43 million for the three months ended December 31, 2017
and March 31, 2017 , respectively, were reclassified from operating
expense to non-operating expense.

SCHEDULE D

Comparability Disclaimer:

We adopted Accounting Standard Update 2014-09, “Revenue from
Contracts with Customers (ASC 606)” on January 1, 2018, using the
modified retrospective application. This method does not impact
the prior periods, which continue to reflect the accounting
treatment prior to the adoption of ASC 606. As a result, for items
that were affected by our adoption of ASC 606, financial results
of periods prior to January 1, 2018 are not comparable to the
current period financial results. To provide comparability to our
results, we provide the following supplemental schedule which
contains certain financial information on a pre adoption of ASC
606 basis.